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  1. Topics
  2. Business
  3. Microeconomics Study Set 10
  4. Quiz 16: The Factors of Production

The Question of How Much Labor a Firm Will Hire

Question 38
Multiple Choice

The question of how much labor a firm will hire comes down to: A) whether added workers are going to generate more revenue or not. B) if the added workers are going to add profits to the firm. C) whether the value of the marginal product is greater than, less than, or equal to the average total cost. D) the amount of capital that will be required in order to ensure the worker is productive.

Related questions
Q 39
The marginal product generated by an additional unit of input times the price of the output is called: A) the value of the marginal product. B) the marginal revenue product. C) Both of these statements are true. D) Neither of these statements is true.
Q 40
The value of the marginal product is the: A) marginal product generated by an additional unit of input times the price of output. B) marginal revenue generated by an additional unit of output times the number of workers hired. C) additional inputs required to produce one more additional unit of output. D) average revenue generated by workers at a firm.
Q 41
For a competitive firm,the marginal revenue product is: A) always positive and nears zero as quantity increases. B) always negative and nears zero as quantity increases. C) zero when profits are maximized. D) decreasing eventually as quantity increases.
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